Article By: Diário Imobiliário
Swiss promoter has already invested close to 300 million in our country and continues to believe in the “Portugal Brand”
April 12, 2024
In Portugal since 2016, they have already invested more than 200 million euros in Portugal and are investing another 80 million, for the Portuguese-Swiss developer Mexto Property, our country has a lot of potential among investors and future clients.
Mexto Property Investment is a real estate developer focused on excellence and specialized in the luxury residential rehabilitation segment. Each project is a work of art with a personal touch, designed and built to inspire a new way of living and exceed the expectations of the most refined and demanding client. The result is distinctly unique residential products.
Tomas Suter, senior advisor & partner at Mexto Property Investment, in an interview with Diário Imobiliário, admits that Mexto remains committed to investing in Portugal, especially in new locations and they are actively looking for new opportunities and exploring potential projects in different regions, covering residential and tourist developments.
What is Mexto Property’s assessment of the projects promoted in Portugal?
We are very proud of Mexto’s journey in Portugal. The Portuguese market continues to show resilience and growth, and our projects are recognized as differentiators not only by clients, but also by sector experts. This recognition is essential for us to continue investing in high quality projects.
We are winners of the SIL awards, with the Avencas project, in 2021, the “Premio Construir” with Maison Eduardo Coelho, in 2022, and, last year, we won the SIL award once again, this time with the Rodrigo da Fonseca project .
We have a growing investment in Portugal and, since 2017, we have had an investment of more than 200 million euros and 71,000 square meters of construction.
What sets it apart in the market?
MEXTO stands out in the market for its commitment to excellence and quality. We treat our projects as true works of art, always paying attention to detail. We are a family company and, as such, we choose to invest in projects that are aligned with the values and lifestyle of our founders, who have a special interest in art, as they are patrons, collectors and curators. Art is part of their lives and, as such, it is natural that art is intrinsically present in Mexto. From the way we imagine our projects and ventures, to the causes we support. In 2024 we are proud to support, for the third consecutive year, ARCOLisboa, the largest Contemporary Art Fair in Portugal.
These characteristics make our projects unique and truly differentiating projects. We have art in our DNA and we are committed to renovating premium areas in the city of Lisbon, preserving their history and rescuing the soul of the buildings, while transforming them into luxury, contemporary and timeless residences. Properties with these characteristics require a high volume of investment, with attention to each phase of construction, the materials used, finishes and amenities . The Rodrigo da Fonseca, Maison Eduardo Coelho and also Avencas projects are a good example of this.
This focus on the quality of finishes is reflected in our most recent project, O’Living, which was born from the need to fill a gap in the Portuguese real estate market, as we aim to offer an attractive and accessible solution to Portuguese families. It is located 5 minutes from Parque das Nações and is a development that stands out for its modern design and the excellence of its interior spaces. We believe that O’Living represents the best value for money currently available on the real estate market. We are proud of the project’s high quality standard, which is reflected in its sustainable construction, flexibility of spaces and the predominantly use of materials of national origin.
O’Living is designed by the renowned architecture studio Saraiva + Associados. The main guidelines were to add value to the urban area where the building is located.
We also believe that there is no innovation and growth without sustainability and, therefore, today we have a big focus on sustainability. In this and also in the brand’s other projects, we implemented measures that go beyond the minimum requirements. At O’Living we installed 28 solar panels and the apartments have high-quality thermal insulation in the pipes, which allows “greater energy efficiency and thermal comfort for residents”
Does Portugal remain attractive for investing?
Of course, we truly believe in the “Portugal Brand” and the potential it has for investors and future customers. Even with the relative political instability, the country continues to be very attractive for foreign investors looking for a safe country, with a mild climate throughout the year and a thriving tourism sector.
These factors make our country a paradise for foreigners looking for quality of life, extraordinary residential areas, in addition to the fact that we have a geographical location in Europe that is furthest away from the current war conflict on this continent.
What are the next projects? How much do you intend to invest in Portugal?
Mexto remains committed to investing in Portugal, especially in new locations. We are actively looking for new opportunities and exploring potential projects in different regions, covering residential and tourist developments. We are about to start two new projects, one on Rua Castilho and the other in the traditional Bairro da Graça. On the other hand, we are about to complete the construction of O’living and deliver the first houses to the new residents.
The apartments are in the finishing phase and will be delivered to future residents in the autumn. The first phase of commercialization is completed and we are now in the second phase, in which there are only a few apartments left, but in which we already have a large part of the houses sold, with more than 80% of the apartments with an owner.
O’Living represents an investment of 35 million euros and has a total construction area of around 19,000 square meters, spread over two lots of 8 floors each. In addition to the 86 T1 to T3 Duplex apartments, with areas between 64 and 216 m², it also has shops on the ground floor and underground parking for all units.
In relation to the other projects mentioned, Castilho 3 will be the rehabilitation of a 19th century building. XIX, with six apartments with very generous areas, in a privileged location. We will also very soon launch two tourist developments: Alento, located in the Comporta-Melides-Grândola triangle. Inserted in a very low density rural resort, it will have a Hotel and 11 villas with the philosophy of Monte Alentejano. The second project is located in Meco, 500m from Rio da Prata beach on a 20ha plot of land, with 10,000 m2 of construction above ground, consisting of apartments, semi-detached houses and detached houses. These three projects represent a total investment value of around 80 million euros.
Where do the best opportunities lie?
The best real estate development opportunities in Portugal vary depending on market dynamics and individual investment objectives. However, areas such as Lisbon, Porto, Algarve and emerging regions such as Aveiro and Braga offer promising prospects for the development of new projects. Factors such as accessibility, infrastructure development, tourist demand and urban revitalization initiatives play a key role in identifying profitable opportunities. We are also confident that Simplex (and the simplification of licensing) will allow us to streamline processes more quickly and effectively.
What difficulties do you encounter in promoting in our country?
Real estate development in Portugal presents its own set of challenges, including bureaucratic obstacles, regulatory complexities and environmental considerations, which pose real difficulties for property developers. Blockages to planning and licensing processes, as well as cost management, construction deadlines and addressing sustainability requirements are among the main obstacles faced by developers in Portugal. We therefore need structural measures that allow us to continue investing and contributing to the country’s economic development in this sector.
What is the profile and nationalities of Mexto Property’s clients?
Mexto’s clients come from different origins and nationalities, reflecting the interest of foreign investors in the Portuguese market. In projects like O’Living, the majority of buyers are Portuguese families, and we have other projects in which the majority are foreign clients. In luxury projects we can consider that 80% are foreigners and 20% are Portuguese, and where the main nationalities come from countries such as the USA, South Africa, Brazil, France and the United Kingdom.
How do you see the future of the real estate market in Portugal and internationally?
The future of real estate development in Portugal remains promising, driven by the sustained demand of investors looking for security, quality of life, safe investment, profitability and who also arrive due to the quality of the product and the development of the Tourism and infrastructure sector.
In the current situation, customers in the luxury segment prefer to invest in housing, as is the case with the majority of Portuguese people who also buy these projects as a form of profitability.